S&S ISA and SIPP with same provider?

Mellow_gogo

I’m 49, and am beginning to act on some of the helpful advice previously received on this forum with regard to making changes aimed at contributing to an early retirement.  First two steps are to:-

1. Open a S&S ISA using the majority of cash currently held in various cash ISA’s – planning to use approx. 110K for this.

2. Open a ‘low cost’ SIPP with an initial lump sum of approx. 15K, and then contributing as close to 10K as I can manage annually until age 55.

The aim is to reduce my working hours from age 55-60, using the SIPP to supplement this drop in salary.  Then to retire fully by age 60 and until state pension age at 67 to draw on the S&S ISAs, with the aim of holding off accessing my LGPS pension until state pension age.

I’m looking at a opening a 60/40 or 40/60 Vanguard Lifestrategy Fund for the S&S ISA, but am also attracted to the Vanguard SIPP for it's low charges.  Are there any reasons why I shouldn’t have the S&S ISA and SIPP with the same provider, or should I look elsewhere e.g. AJ Bell for the SIPP.  I know that with the Vanguard SIPP you’d only have access to their own passive funds, but as it’s only a passive ‘managed’ fund I’m looking for anyway, would that be such a decisive thing to consider in this case?

Advice or opinions on any of the above gratefully received!

MX5huggy

Do you still work in LG? What’s your council’s AVC offering? I Salary Sacrifice so each £100 into pension costs me £68, I’m a basic rate tax payer.

It’s OK have SIPP and ISA in same provider. Is Vanguard the cheapest provider of Vanguard LS? 

I would be “living off” the ISA money so I could put all my salary in the SIPP (max £40k per year). 

dunstonh

I’m looking at a opening a 60/40 or 40/60 Vanguard Lifestrategy Fund 

To avoid confusion, the funds only state the equity content in the name. So, its VLS60 or VLS40.     

re there any reasons why I shouldn’t have the S&S ISA and SIPP with the same provider,

No. Most people hold different wrappers on the same platform. Indeed, its a key advantage of platforms.

Mellow_gogo

Mx5Shuggy yep I still work in LG. Employer doesn’t contribute to AVC’s but I was considering them as well anyway. Just wanted to get the ISAs and SIPP sorted first. I’m a basic rate taxpayer. 

You’re right, Vanguard may well not be the cheapest provider of the Lifestrategy fund. I think it becomes less likely to be the bigger the investment.  

MX5huggy

The order of savings for me is emergency fund/saving for big purchases (ie cash, currently premium bonds).

Then AVC’a as they are most tax efficient with the NI savings. Then it would be SIPP then S&S ISA I don’t have enough money for the latter 2 yet, if I did I would be looking to use it to let me do more AVC. The AVC can also be accessed tax free if it’s taken as your tax free lump sum with the main scheme benefits. 

My employer doesn’t contribute either (technically they do but only by the amount I Sacrifice) but they save their NI they would of paid if I had taken the salary. Ask your cash strapped Finance Director why they don’t save money for your authority by offering SS (if they don’t). 

https://www.pru.co.uk/rz/localgov/sal-sac-avcs/#standard-accordion-panel-par-accordion_1380598748-1

Notepad_Phil

Mellow_gogo said:

Are there any reasons why I shouldn’t have the S&S ISA and SIPP with the same provider, or should I look elsewhere e.g. AJ Bell for the SIPP.

There may be benefits in having two platforms if it means it's cheaper for you.

e.g. The cheapest annual fee for me comes from holding my S&S ISA on iweb (no annual platform charge, £5 per purchase/sell) whilst I hold my SIPP on ii.

Mellow_gogo

Notepad_Phil. Thanks, yes I’d read of that possibility here:-https://moneytothemasses.com/saving-for-your-future/investing/vanguard-investor-uk-review-is-it-the-best-in-the-market/amp

It mentions if investing over £80,000 then going via another platform could be cheaper-  it highlights the holding of Vanguard funds through Interactive Investor here.